Parent PLUS Loans can help pay for your child’s education, but how do you apply for one? Read on for a step-by-step guide to the Parent PLUS Loan application process.
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The first step in applying for a Parent PLUS Loan is to complete the Free Application for Federal Student Aid (FAFSA®). Once you have completed the FAFSA, you will receive a Student Aid Report (SAR) that will include your Expected Family Contribution (EFC).
The next step is to complete a PLUS Loan Application and Master Promissory Note at www.studentaid.gov. The PLUS Loan Application will ask for information about you and your child, such as your addresses, incomes, and asset values. You will also need to provide information about your child’s school, including the cost of attendance and school code.
After you have completed the application and Master Promissory Note, your child’s school will receive notification that you have applied for a Parent PLUS Loan. The school will then determine whether you are eligible for the loan and will notify you of their decision. If you are approved, the loan funds will be disbursed to your child’s school to pay for education expenses.
What is a Parent Plus Loan?
A Parent PLUS Loan is a federal loan that is available to parents of dependent undergraduate students. PLUS Loans help pay for education expenses up to the total cost of attendance minus any other financial aid the student may receive.
Eligible parents can apply for a Parent PLUS Loan by completing a Free Application for Federal Student Aid (FAFSA®) form. Once the form has been completed and submitted, the student’s school will determine the amount of financial aid the student is eligible to receive.
If the parent is determined to have bad credit, they may still be able to obtain a Parent PLUS Loan by finding a creditworthy endorser or documenting extenuating circumstances.
Parent PLUS Loans are not based on financial need and there is no maximum income limit. However, parents must not have an adverse credit history in order to qualify for a loan.
Applying for a Parent Plus Loan
To apply for a Parent Plus Loan, you will need to fill out the Free Application for Federal Student Aid (FAFSA®) form. You will also need to sign a Master Promissory Note, which is a legally binding agreement between you and the Department of Education.
The Application Process
The first step in applying for a Parent PLUS Loan is to complete the Free Application for Federal Student Aid (FAFSA®). You’ll need your child’s school information and your own financial information to complete the form.
Once you’ve completed the FAFSA, you’ll receive a Student Aid Report (SAR) that includes your Expected Family Contribution (EFC). Your child’s school will use this information to determine how much financial aid you’re eligible for.
If you’re eligible for a Parent PLUS Loan, the next step is to complete a Master Promissory Note (MPN). This is a legally binding document that outlines the terms and conditions of your loan. Once you’ve completed the MPN, you can begin requesting loans for each academic year.
Applying for a PLUS Loan as a Graduate or Professional Student
If you’re a graduate or professional student and want to apply for a PLUS loan, you will need to complete a PLUS Loan Application and Master Promissory Note (MPN). You can get started by logging in to StudentLoans.gov with your FSA ID.
To complete the PLUS Loan Application, you will need:
-Your FSA ID
-Your school’s cost of attendance
-The amount you want to borrow
-Your Parent’s information (if applicable)
Once you have completed the application, you will need to sign the Master Promissory Note (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
The Parent PLUS Loan can be a helpful way to finance your child’s education, but it’s important to understand the terms of the loan before you apply. Make sure you understand the interest rate, repayment options, and terms and conditions of the loan before you sign on the dotted line.